Americas Gold and Silver Corp. (USAS) stock prices were up by 1.25% at the end of market trading on July 12th, 2021, bringing the price per share up to USD$1.62. Subsequent premarket fluctuations saw the stock fall by 6.79%, bringing it down to USD$1.51.
Galena Milestone
The company announced on July 12th 2012 that it had reached a significant milestone in its Galena Complex Recapitalization Plan, having completed its Phase 1 drilling program. The most recent mineral resource update was released in September 2020, having successfully demonstrated the significant exploration potential at the property. This is shown by the significant increase in Measured and Indicated Resource of 36%, while Inferred Resource was up by 100%.
Mineral Resource Forecast
An updated Mineral Resource estimate is forecasted to be provided by the company by the end of August 2021. USAS is confident that the resource estimates will increase by the company’s target for over 50 million ounces of silver when considering Galena on a 100% basis. This forecast is based on the success of continued exploration from drilling completed during July 2020 through to June 2021.
Production Growth
2021 is expected to be a transitional year at the Galena Complex with production volumes in mind, as exploration drilling continues to facilitate ongoing success. The company’s operations will support production growth towards a 2 million silver ounce per year plan by the end of 2022. Contingent on the ongoing success of the exploration drilling, the company is confident in the long run that production will hit its historical annual production levels of roughly 5 million ounces per year.
Galena Phase 2
The Phase 2 drill program has an anticipated commencement date of the third quarter of 2021, with several targets already identified. Drilling will be centered around a newly developed drill station east on the 5500-Level, in the interest of continuing to test the extension of the Silver Vein at depth. This comes after the success of the initial 21-hole drill program, with subsequent drill stations being planned further east on the 5500-Level in order to continue targeting the Silver Vein and 360 Complex.
Future Outlook for USAS
Armed with the promising development of their exploration drilling program, USAS is poised to capitalize on the opportunities afforded to it by its continued and effective allocation of resources. Current and potential investors are hopeful that management will continue to facilitate organic and long term growth as the company continues to extrapolate its trajectory of success.
